Electrical Utilities Criteria

The Electrical Utilities Criteria provide a framework for certifying entities and debt instruments based on their emissions intensity and transition pathways toward net-zero by 2040. The criteria distinguish between existing and new capacity, setting specific GHG thresholds for low-carbon technologies and phase-out dates for unabated fossil fuel plants. It also defines requirements for mitigation measures like CCS/CCUS and cofiring, as well as a comprehensive adaptation and resilience checklist to ensure infrastructure is robust against physical climate hazards.

• The criteria define a CO2 emissions intensity transition pathway for the power sector aiming for net zero emissions by 2040, with specific benchmarks: 460 gCO2/kWh in 2025, 186 gCO2/kWh in 2030, 48 gCO2/kWh in 2035, and 3 gCO2/kWh in 2040.
• Entity certification is divided into two tiers: 'Aligned' entities meet the transition pathway at the time of certification, while 'Transitioning' entities may not meet it initially but must align by 30 December 2030 and continue through 2050.
• For existing fossil fuel capacity, the criteria mandate the phasing out of unabated coal plants by 2030 in advanced economies and by 2040 in emerging economies. Unabated fossil gas plants must be phased out by 2040 regardless of economy type, and all oil power plants must be phased out by 2030 (advanced) or 2040 (emerging).
• New low-carbon capacity must meet stricter GHG emission thresholds than existing capacity: hydropower, geothermal, and bioenergy are limited to 50 gCO2e/kWh for new facilities, compared to 100 gCO2e/kWh for existing ones.
• Use-of-Proceed (UoP) bonds for mitigation in fossil fuel plants are eligible if they implement CCS/CCUS with a capture rate of 90% or cofiring with low-carbon fuels at a rate of 100% from the first day of operation.
• The criteria for Carbon Capture and Storage (CCS) require that CO2 transport leakages do not exceed 0.5% of the mass of CO2 transported and that storage complies with ISO 27914:2017.
• Bioenergy feedstock is restricted to lignocellulosic biomass, energy crops, and residues; it explicitly excludes third generation biofuels (algae), wood, and biodegradable municipal solid waste (MSW).
• Fossil gas plants must implement measures to limit methane leakages, including detection and reparation programs following EU Taxonomy regulation.

APA

Climate Bonds Initiative (2023). Electrical Utilities Criteria. https://www.climatebonds.net/files/drupal-files/files/electrical-utility-criteria-122023.pdf

Chicago

Climate Bonds Initiative. Electrical Utilities Criteria. 2023. https://www.climatebonds.net/files/drupal-files/files/electrical-utility-criteria-122023.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Electrical Utilities Criteria |date=5 December 2023 |url=https://www.climatebonds.net/files/drupal-files/files/electrical-utility-criteria-122023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2023electrical, author = {{Climate Bonds Initiative}}, title = {{Electrical Utilities Criteria}}, institution = {Climate Bonds Initiative}, year = {2023}, month = dec, url = {https://www.climatebonds.net/files/drupal-files/files/electrical-utility-criteria-122023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }